ISLAMABAD: Finance Minister Shaukat Tarin has warned Sindh Government that if the liabilities of K-IV project were not adjusted with counterpart funding by March 31, 2022, it will be adjusted through the Federal Adjustor, well informed sources told Business Recorder.
He conveyed this message while presiding over a meeting of Executive Committee of National Economic Council (ECNEC) on January 31, 2022, during discussion on modified PC-1 of K-IV project.
The Ministry of Planning, Development and Special Initiatives, briefed the ECNEC that the project was considered by the CDWP in its meeting held on December 27, 2021 in compliance with CDWP recommendations; and Ministry of Water Resources/ WAPDA submitted a modified revised PC-I with a scope of 260MGD at a cost of Rs126.405 billion along-with compliance report for consideration by the ECNEC.
The Ministry of Planning, Development and Special Initiatives submitted the modified revised PC-I of project of 260MGD at a cost of Rs 126.405 billion, duly agreed by WAPDA, Ministry of Water Resources and KW&SB, Government of Sindh (GoS) for consideration of ECNEC with following recommendations: (i) GoS will ensure provision of 260MGD water from Keenjher Lake for the project; (ii) GoS will clear all its outstanding liabilities.
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Reconciled statement of incurred expenditures along with details of work done duly verified by a credible third party will be submitted by GoS; (iii) GoS will provide earlier agreed share of funds (i.e., 50% share of original approved PC-I cost, i.e., Rs 412.779 billion) for the project; (iv) GoS will complete acquisition and handing over of the remaining/ un-acquired land to WAPDA ;(v) Project Steering Committee, chaired by Chief Secretary Sindh and having representations of M/o Water Resources, M/o PD&SI at Joint Secretary level with Project Director of the project as Secretary, will hold regular meetings (at least once every quarter) to steer the project within the approved cost and timelines ;(vi) GoS will ensure provision of electricity through STDC/ HESCO for the successful implementation of the project;(v) GoS will ensure synchronization of augmentation work with water conveyance system along with Operation & Maintenance (O&M) of the project after its handing over by Ministry of Water Resources/ WAPDA;( viii) GoS will ensure provision of potable water to the residents of Karachi at affordable tariff ;(ix) Ministry of Water Resources will ensure implementation of the project in close coordination with Government of Sindh through compliance of ECNEC decisions, as well as, observing all codal formalities and;(x) WAPDA will ensure that payment to consortium of consultant is made after it has been duly registered with PEC.
The Chairman WAPDA briefed the forum that in the first phase, the project has been recommended with a scope of 260MGD capacity. However, there is a provision in the design for increasing the scope up to 650 MGD, whenever needed. Minister for Planning, Development and Special Initiatives asked the reasons for increase in the cost of the project, against the initial scope. Chairman WAPDA stated that there were serious flaws in the initial design, which have been corrected and improved. He added that the project shall commence in April 2022, and be completed by August, 2023. The forum appreciated the efforts of the Chairman, WAPDA.
Chairman WAPDA stated that the project success is dependent on the completion of augmentation/ distribution network by the GoS/ KW&SB. At the moment, progress was very slow in that regard.
Secretary, Water Resources stated that the project could only succeed if the GoS provides ROW, uninterrupted power supply and distribution network within the matching time.
The Chairman, P&D Board Sindh, assured the forum that all works will be completed within the matching time of the project and full cooperation of GoS will be extended in implementation of the project within the stipulated time.
The sources said an issue of payment reconciliation of outstanding liabilities was raised before the forum. It was observed that the issue might delay the implementation of the project. However, the Finance Minister gave the deadline of March 31, 2022, for clearing the outstanding liabilities. He added that if the liabilities were not adjusted to the counterpart funding, it will be adjusted through the Federal Adjustor.
Copyright Business Recorder, 2022
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